Find Legal Information

611.61 Transactions of insurers with affiliates.

611.61

611.61 Transactions of insurers with affiliates.

611.61(1)

(1) Restricted transactions. No transaction may be entered into between an insurer authorized to do business in this state and any affiliate unless:

611.61(1)(a)

(a) The transaction at the time it is entered into is reasonable and fair to the interests of the insurer;

611.61(1)(b)

(b) The books, accounts and records of each party to the transaction are kept in a manner that clearly and accurately discloses the nature and details of the transaction and in accordance with generally accepted accounting principles permits ascertainment of charges relating to the transaction; and

611.61(1)(c)

(c) If the transaction is a reinsurance transaction, it is reported to the commissioner immediately if the insurer is a domestic corporation.

611.61(2)

(2) Voidability. Transactions entered into by domestic corporations in violation of sub. (1) are voidable by the corporation.

611.61 - ANNOT.

History: 1971 c. 260; 1979 c. 102.